Pradhan Mantri Fasal Bima Yojana Current Affairs
Government has appointed senior bureaucrat Ashish Kumar Bhutani as Chief Executive Officer (CEO) of Pradhan Mantri Fasal Bima Yojana (PMFBY). He has been appointed to post till May 2020. He is IAS officer (1992 batch) of Assam-Meghalaya cadre.
Pradhan Mantri Fasal Bima Yojana (PMFBY)
It is farmers’ welfare scheme launched in 2016 to ensure faster insurance services or reliefs to farmers. It was formulated in line with One Nation–One Scheme theme by replacing earlier two schemes National Agricultural Insurance Scheme (MNAIS) and Modified National Agricultural Insurance Scheme (MNAIS) by incorporating their best features and removing their inherent drawbacks (shortcomings). It aims to reduce the premium burden on farmers and ensure early settlement of crop assurance claim for the full insured sum.
Objectives: Provide insurance coverage and financial support to farmers in event of natural calamities, pests & diseases. Stabilise income of farmers to ensure their continuance in farming. Ensure flow of credit to the agriculture sector. Encourage farmers to adopt innovative and modern agricultural practices.
Beneficiaries: All farmers growing notified crops in notified area during season who have insurable interest in crop are eligible under this scheme. It also provides insurance benefits to Landless labourers. It is compulsory for loanee farmers availing crop loans for notified crops in notified areas and voluntary for non-loanee farmers.
Key Features of Scheme
Under this scheme, farmers need to pay uniform premium of only 2% for all Kharif crops and 1.5% for all Rabi crops. In case of annual commercial and horticultural crops, farmers have to pay premium of only 5%. The premium rates to be paid by farmers are very low and balance premium will be paid by Government. Moreover, there is no upper limit on Government subsidy, so farmers will get claim against full sum insured without any reduction.
It covers yield losses due to non-preventable risks, such as natural fire and lightning, storm, stailstorm, cyclone, typhoon, tempest, hurricane, tornado. It also covers risks due to flood, inundation and landslide, drought, dry spells, pests and diseases. It also covers post-harvest losses are also covered.
Udder this scheme, it mandatory for use of technology such as smart phones, drones etc to capture and upload data of crop cutting to reduce delays in claim payment to farmers. Remote sensing will be also used to reduce number of crop cutting experiments. The scheme is implemented on Area Approach basis. In this case, defined area (i.e. unit area of insurance) is village or above it can be geo-mapped and geo-fenced region having homogenous risk profile for notified crop.
The Union Cabinet has approved Pradhan Mantri Fasal Bima Yojana, a new crop insurance scheme to boost farming sector in the country.
It is farmers’ welfare scheme that aims to reduce the premium burden on farmers and ensure early settlement of crop assurance claim for the full insured sum.
Highlights of Scheme
- Uniform premium: Farmers will pay uniform premium of 2 per cent for all Kharif crops and 1.5 percent for all Rabi crops.
- In case of annual horticultural and commercial crops, farmers will pay 5 per cent premium. These premium rates are very low.
- Government will pay balance premium to provide full insured amount to the farmers against crop loss on account of natural calamities.
- Government subsidy: There will be no upper limit subsidy given by Government even if balance premium is 90 percent.
- Capping the Premium: The provision of capping the premium rate has been removed and farmers will get claim against full sum insured without any reduction.
- It was removed as it resulted in low claims being paid to farmers and was mainly done to limit Government outgo on the premium subsidy.
- Use of technology: Government will encourage use of technology especially Smart phones and remote sensing to a great extent.
- In order to reduce the delays in claim payment to farmers, smart phones will be used to capture and upload data of crop cutting.
- To reduce the number of crop cutting experiments remote sensing will be used.
The new Crop Insurance Scheme has been formulated in line with One Nation–One Scheme theme. It replaces existing two schemes viz. National Agricultural Insurance Scheme (MNAIS) and Modified National Agricultural Insurance Scheme (MNAIS) by removing their inherent drawbacks (shortcomings) and incorporating the best features of all previous schemes.